José Manuel González-Páramo: “TTIP is a unique opportunity in a generation”

BBVA’s executive director, José Manuel González-Páramo, believes that the Transatlantic Trade and Investment Partnership between the European Union and the United States that is currently being negotiated “is a unique opportunity to strengthen even further relationships between Europe and the United States.

He made this statement this morning at CEOE during the presentation of the book The impact on the Spanish economy of the signing of the Transatlantic Trade and Investment Partnership (TTIP) agreement with the U.S., prepared by the Institute of Economic Studies (IEE). José Manuel González-Páramo referred to this book as “one of the most detailed and thorough studies existing on the impact of TTIP on an economy and, obviously, on the Spanish economy”.

Photos of José Manuel González-Páramo (BBVA) TTIP (IEE)

In his opinion, the TTIP will boost the internationalization of Spanish companies by reducing barriers to trade and facilitating investment flows. It would also offer great market opportunities to Spanish companies, particularly small and medium-sized enterprises (SMEs). This is particularly relevant in the Spanish context, where over 90% of exporting companies are SMEs. This would increase the productivity of our companies and, therefore, of the Spanish economy as a whole, which is the only way to ensure sustainable growth of activity and employment.

The executive director of BBVA went over the quantification of the positive impacts for the Spanish economy in any scenario in the event that the agreement is approved, but which in the most ambitious case would involve the generation of nearly 84,000 new jobs a year over the next five-year period. Moreover, Spanish GDP would grow by up to 9,230.7 million euros a year (an additional 0.74%) in the long term. Lastly, Spanish exports to the United States would increase to 32% a year.

The TTIP will boost the internationalization of Spanish companies by reducing barriers to trade and facilitating investment flows

Jose Manuel Gonzalez-Paramo (BBVA); Concepción Latorre, chief investigator of the study prepared by the Institute of Economic Studies (IEE); and José Luis Feito, chairman of the IEE, in the presentation of the book on the economic impact of TTIP in Spain

Strengthening of relations between Europe and the U.S.

During his presentation, José Manuel González-Páramo stressed the importance of the possible signing of the TTIP due to its contribution to growth and employment in Spain, and also as a way of boosting and strengthening relations between Europe and the United States.

In his opinion, the TTIP would help better deal with the challenges of a changing and complex world from three different angles: economic, geopolitical and security cooperation.

Economically, the TTIP would associate even more closely two big economies with some 850 million people that account for about a third of global GDP. González-Páramo stressed that the creation of a larger single market is the best way for both areas to offer their citizens, and the rest of the world, better conditions in a global economy that is becoming increasingly globalized. He also pointed out that the TTIP should be the basis for setting global rules for trade and investment in the 21st century.

The TTIP would help better deal with the challenges of a changing and complex world

From the geostrategic point of view, the TTIP offers the chance to strengthen the position of the Atlantic relationship via-à-vis the increased influence in global economic development of the Asia-Pacific region, particularly after the signing of the TPP (Trans Pacific Partnership) agreement, explained the executive director of BBVA.

Lastly, he referred to commercial cooperation as a lever for reinforcing security. In this regard he explained that Europe today faces unique security challenges, also in the digital area. With a view to tackling them, the TTIP would be a unique opportunity for deepening the association with the U.S. One example of a strategic matter are the trans-Atlantic agreements for sharing information, said José Manuel González-Páramo.

BBVA’s executive director ended his presentation emphasizing that “we must seize this moment to reach an agreement on the TTIP both to boost economic growth and job creation in Spain and to improve and strengthen the trans-Atlantic association”. And he said that “in 2016 we have a window of opportunity we should not miss”.

Lastly, he called for a firm commitment to maintain the momentum at the highest level. “We must focus on our goal, secure the final prize, arrive soon at an agreement that can benefit both sides of the Atlantic”, he concluded.

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